UNIFIED ACCOUNTS CODE STRUCTURE A Presentation to the Government Association of Certified Public Accountants (GACPA) by: Luz M. Cantor Assistant Secretary, DBM October 17, 2013 The Oriental Hotel, Taysan Hill Sto. Niño Village, Legaspi City Outline PART 1. The PFM Reform Roadmap and UACS 1. Background of PFM PFM Cycle and Gaps PM Reform Roadmap 2. Executive Order No. 55 Deliverables 3. Unified Account Code Structures (UACS) What is UACS? Why a UACS? Where will UACS be used? Coverage of UACS PART 2. UACS Structure or Key Elements 1. Funding Source Code 2. Organization Code 3. Location Code 4. MFO/PAP Code 5. Object Code PART 3. Code Administration 2 Part I The PFM Reform Roadmap and the UACS PFM Cycle and Gaps PREPARATION lack of budget credibility budget not results-based lack of funding predictability ACCOUNTABILITY AUTHORIZATION weak budget oversight by Congress and the public weak cash management system no common budgetary and accounting classification weak monitoring of contingent liabilities EXECUTION Financial Reporting NOW The Philippine PFM needs this kind of information system UACS and PFM Policy Basis Master plan for modernizing the financial management system of the government Executive Order 55 (s. 2011) directs the integration and automation of PFM systems Improve efficiency, accountability and transparency of public fund use Contribute to good governance and fiscal discipline as a strategy for inclusive growth and poverty reduction Deliverables required under EO 55 • Real time online accounting • Monitoring and control of obligations and disbursements • Regular in-year reporting of budget execution • Timely year-end audit reporting of agency financial and physical operations • Comprehensive, timely, accurate and consolidated PFM System 7 What is UACS? a government-wide harmonized budgetary, treasury and accounting code classification framework to facilitate reporting of all financial transactions of agencies 8 Why a UACS? • Directed at harmonizing budgetary and accounting classifications and structures for simplifying and consolidating formats for financial reports • Enable reporting of actual revenues and actual expenditures compared to what was projected to be collected and expended in the budget • Enable the comparison of disbursements for programs/projects/activities with their approved appropriations Source: PFM Reform Roadmap 9 Where will UACS be used? Every IT system should adopt the UACS for: • Budget cycle - Preparation, Legislation, Execution and Accountability • Reporting Appropriation, Allotment, Obligation, Disbursement • Enabling reporting of actual expenditure against budget appropriation as envisaged in PFM roadmap • Payroll, budget, cash management, budget execution and forward planning • Performance measurement – performance indicators linked to UACS MFOs and outcomes achieved reported against budget and targets 10 UACS Coverage All NGAs including Constitutional Commissions/Offices, SUCs and GOCCs receiving Budgetary Support from NG, including those maintaining special accounts in the general fund 11 Part II UACS Structure UACS Structure Funding Source (6 digits) Organization (12 digits) Location (9 digits) Program/ Project/Purpose (9 digits) Financing Source (1digit) Department (2digits) Region (2digits) Program MFO/Project (1digit) Authorization (2digits) Agency (3digits) Province (2digits) MFO/Project Category (2digits) Fund Category (3digits) Lower-Level Operating Unit (7digits) City/Municipality (2digits) 1st level Activity/Project Sub Category (2digits) Barangay (3digits) 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) Funding Source Segments Funding Source 6 Digits Financing Source Authorization 1 digit 2 digits Fund Category 3 digits Funding Source: Financing Particulars UACS General Fund 1 Off-Budgetary Funds 2 Custodial Funds 3 Funding Source: Authorization Particulars UACS New General Appropriations 01 Continuing Appropriations 02 Supplemental Appropriations 03 Automatic Appropriation 04 Unprogrammed Funds 05 Retained Income/Funds 06 Revolving Funds 07 Trust Receipts 08 Funding Source: Fund Category Particulars Specific Budgets of National Government Agencies GoP Counterpart Funds and Loans/Grants from Multilateral and Bilateral Institutions Allocations to Local Government Units Budgetary Support to Government Corporations Financial Assistance to Metro Manila Development Authority Special Accounts in the General Fund Special Purpose Funds Unprogrammed Funds Retained Income/Funds Revolving Funds Trust Receipts Others (Specify) Codes Old 101 102/171 UACS 101 to 150 151 to 250 103 104 251 to 275 276 to 300 301-320 105,183,401, 151 to 159 161 to 164 101-184, 187 321 to 400 401 to 420 421 to 440 441 to 500 501 to 600 601 to 610 611 to 999 Combined Funding Source Code Particulars a. General Fund New General Appropriation Funding Fund Financing Authorization = Source Category Code 1 01 Agency Specific Budget Misc. Personnel Ben Fund b. Automatic Appropriation RLIP Special Account in the Gen. Fund DPWH-Special Road Support Fund 1 101 406 101101 101406 102 104102 346 104346 04 Business Rules to Facilitate Data Integrity: Fund Source Code • Requires users to identify source of funds in the case of foreign assisted projects i.e. which country or multilateral agency provided financing for the project? • Requires users to identify type of funds being given to GOCCs in the case of budgetary support i.e. Is it equity, subsidy or net lending? 19 UACS Structure Funding Source (6 digits) Organization (12 digits) Location (9 digits) Program/ Project/Purpose (9 digits) Financing Source (1digit) Department (2digits) Region (2digits) Program MFO/Project (1digit) Authorization (2digits) Agency (3digits) Province (2digits) MFO/Project Category (2digits) Fund Category (3digits) Lower-Level Operating Unit (7digits) City/Municipality (2digits) 1st level Activity/Project Sub Category (2digits) Barangay (3digits) 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) Organization Code Segments OSEC-DBM, Regional Office - I 06 001 03 00001 12 Digits DEPARTMENT OLD DBM UACS 06 (2 digits) AGENCY OLD OSEC-DBM UACS001 (3 digits) LOWER-LEVEL OPERATING UNIT OLD Region I (Activity) UACS03 00001(RO-1) (7 digits) Organization Code Segments Organization Code 12 Digits DEPARTMENT 2 digits AGENCY 3 digits LOWER-LEVEL OPERATING UNIT 7 digits Department Code DEPARTMENT Congress of the Philippines Office of the President Office of the Vice-President Department of Agrarian Reform Department of Agriculture Department of Budget and Management Department of Education State Universities and Colleges Department of Energy UACS 01 02 03 04 05 06 07 08 09 Agency Code DEPARTMENT/AGENCY Department of Budget and Management UACS 06 000 0000000 Office of the Secretary 06 001 0000000 Government Procurement Policy BoardTechnical Support Office 06 002 0000000 Examples of Operating Units Classification LOWER-LEVEL OPERATING UNITS CLASSIFICATION Central Office Staff Bureaus Regional Offices/Centers for Health Development/ Regional Field Units State Universities and Colleges - Campuses Provincial Offices National Irrigation Administration Offices Schools Division/District Offices Secondary Schools UACS 01 02 03 04 05 06 08 09 Lower-Level Operating Unit DEPARTMENT/AGENCY/OPERATING UNIT Department of Budget and Management Office of the Secretary UACS 06 000 0000000 06 001 0000000 Central Office 06 001 0100000 Regional Office – I 06 001 0300001 Regional Office – NCR 06 001 0300013 Regional Office – CAR 06 001 0300014 Regional Office – II 06 001 0300002 Regional Office – III Government Procurement Policy BoardTechnical Support Office 06 001 0300003 06 002 0000000 Organization Code Segments 1. Department – an executive department created by law; includes any instrumentality having or assigned the rank of a department, regardless of its name or designation. (e.g. DepEd ) 2. Agency – refers to various units of the Government, including bureau, office, instrumentality or GOCC. (e.g. DepEd – Office of the Secretary) 3. Operating Unit – refers to entities charged with carrying out specific substantive functions or with directly implementing programs/projects of a department or agency, such as regional offices, line bureaus and field units. 27 Organization Code Segments EXAMPLE: DEPARTMENT From: Department of Education 07 To: Department of Trade and Industry 22 AGENCY LOWER LEVEL OPERATING UNIT UACS National Book Development Board (NBDB) 002 0000000 07 002 0000000 0000000 22 007 0000000 National Book Development Board (NBDB) 007 UACS Structure Funding Source (6 digits) Organization (12 digits) Location (9 digits) Program/ Project/Purpose (9 digits) Financing Source (1digit) Department (2digits) Region (2digits) Program MFO/Project (1digit) Authorization (2digits) Agency (3digits) Province (2digits) MFO/Project Category (2digits) Fund Category (3digits) Lower-Level Operating Unit (7digits) City/Municipality (2digits) 1st level Activity/Project Sub Category (2digits) Barangay (3digits) 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) Location Code Segments Location Code 9 Digits Region 2 digits Province 2 digits City/ Municipality 2 digits Barangay 3 digits Location Code 31 Location Code Segments Location 9 digits Region 2 digits Province 2 digits City/Municipality 2 digits Barangay 3 digits 32 Region Code Region I – Ilocos Region II – Cagayan Valley Region III – Central Luzon Region IV-A – CALABARZON Region IV-B – MIMAROPA Region V – Bicol Region VI – Western Visayas Region VII – Central Visayas Region VIII – Eastern Visayas Region IX – Zamboanga Peninsula Region X – Northern Mindanao Region XI – Davao Region XII - SOCSKSARGEN Region XIII – CARAGA National Capital Region Cordillera Administrative Region Autonomous Region in Muslim Mindanao 01 02 03 04 17 05 06 07 08 09 10 11 12 16 13 14 15 33 Province Code PROVINCE CAR - Cordillera Administrative Region Abra Apayao Benguet Ifugao Kalinga Mountain Province UACS 01 81 11 27 32 44 Municipality Code MUNICIPALITY CAR - Cordillera Administrative Region Abra Bangued Bolinay Bucay Bucloc UACS 140000000 140100000 140101000 140102000 140103000 140104000 UACS Structure Funding Source (6 digits) Organization (12 digits) Location (9 digits) Program/ Project/Purpose (9 digits) Financing Source (1digit) Department (2digits) Region (2digits) Program MFO/Project (1digit) Authorization (2digits) Agency (3digits) Province (2digits) MFO/Project Category (2digits) Fund Category (3digits) Lower-Level Operating Unit (7digits) City/Municipality (2digits) 1st level Activity/Project Sub Category (2digits) Barangay (3digits) 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) MFO/PAP Code Segments MFO/PAP Code 9 Digits Activity Code Program 1 digit MFO 2 digits Project 1 digit Project Category 2 digits 1st Level 2 digits 2nd Level 4 digits Project Sub-Category 2 digits Project Title 4 digits Activity Code Purpose (SPF) 1 digit 1st Level 2 digits 2nd Level 2 digits 3rd Level 4 digits PAP Category Programs, Projects or Purpose General Administration and Support (GAS) Support to Operations (STO) UACS 1 2 Operations 3 Locally-Funded Projects 4 Foreign-Assisted Projects 5 Purpose 6 Project Category Project Category Physical Infrastructure Buildings and Other Structures Flood Control and Drainage Non-Road Transport Infrastructure Power and Communications Infrastructure Roads and Bridges Water Management Non Physical Infrastructure Projects Economic Development Education Environmental Protection Governance Health Recreation, Sports and Culture Research and Development Social Protection UACS 01 02 03 04 05 06 07 08 09 10 11 12 13 14 Project Sub-Category PARTICULARS Buildings and Other Structures School Buildings Health Facilities Flood Control Flood Control Structures/Facilities Drainage/Protection Works Governance General Public Services Defense Public Order and Safety Systems Development Capacity Development Governance and Accountability Improvement UACS 0100 0101 0102 0200 0201 0202 1000 1001 1002 1003 1004 1005 1006 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS UACS General Administration and Support 1 00 00 0000 General Administration and Support Services 1 00 01 0000 General Management and Supervision 1 00 01 0001 Support to Operations Budget and Management Support Services Legal Services Information and Communications Technology Systems Services Training and Information Services 2 00 2 00 2 00 00 01 01 0000 0000 0001 2 00 2 00 01 01 0002 0003 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary PARTICULARS Operations MFO 1: Budget Policy Advisory Services Fiscal policy research, budget planning and programming, including provision of technical secretariat services to the Development Budget Coordination Committee (DBCC) MFO 2: Budget Management Services Planning, management and monitoring of the annual budget program Evaluation, release and monitoring of funding requirements and organization, staffing and compensation proposals of National Government Agencies, including State Universities and Colleges, GOCCs and LGUs UACS 3 00 3 01 00 00 0000 0000 3 01 01 0000 3 3 02 02 00 01 0000 0000 3 02 02 0000 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED PARTICULARS UACS MFO 3: Organizational Productivity Enhancement Services Policy formulation and standards-setting, and evaluation of agency proposals Internal control systems and procedures towards productivity improvement Major organization and staffing modification, compensation and position classification 3 03 00 0000 3 03 01 0000 3 03 01 0001 3 03 01 0002 MFO 4: Performance Review and Evaluation Services Financial and physical performance review and evaluation 3 04 3 04 00 01 0000 0000 Example of MFO/PAP Coding DEPARTMENT OF BUDGET AND MANAGEMENT: Office of the Secretary CONTINUED PARTICULARS Locally-Funded Projects Governance Governance and Accountability Improvement Budget Improvement Project Philippine Government Electronic Procurement Systems - PhilGEPS 4 4 4 4 00 10 10 10 UACS 00 00 06 06 4 10 06 0000 0000 0000 0001 0002 UACS Structure Funding Source (6 digits) Organization (12 digits) Location (9 digits) Program/ Project/Purpose (9 digits) Financing Source (1digit) Department (2digits) Region (2digits) Program MFO/Project (1digit) Authorization (2digits) Agency (3digits) Province (2digits) MFO/Project Category (2digits) Fund Category (3digits) Lower-Level Operating Unit (7digits) City/Municipality (2digits) 1st level Activity/Project Sub Category (2digits) Barangay (3digits) 2nd level Activity/Project Title (4digits) Object (10 digits) COA Revised Chart of Accounts (8 digits) Sub-Object (2 digits) Object Code Segments UACS Object Code 10 Digits COA Revised Chart of Accounts 8 digits Sub-Object 2 digits COA Revised Chart of Accounts (RCA) • Has been substantially revised to consolidate some line items, add clarity to overall structure and to facilitate compliance with International Public Sector Accounting Standards • Moved away from the 2003 3-digit coding framework to a 2012 8-digit framework Description Assets Liabilities Equity Income Expenditure CoA 1 2 3 4 5 47 Object Code • Every item on the COA’s Revised Chart of Accounts included • Sub-Object codes added to meet DBM, BTr, DoF & COA reporting requirements • Capital Outlay codes added in correspondence with relevant COA’s Revised Chart of Accounts Asset Codes • Some Lump-Sum Codes added for use prior to transfer to Departments Object Code Framework • Every item on the COA Revised Chart of Accounts included • Sub codes COA added to meet DBM, BTr, DoF and COA reporting requirements • Capital Outlay codes added corresponding with relevant COA Revised Chart of Account asset codes 49 Starting Point – COA’s Revised Chart of Accounts 5 Expenses 01 Personnel Services 5 5 01 01 Salaries and Wages 5 01 01 010 Salaries and Wages - Regular 5 01 01 020 Salaries and Wages - Casual/Contractual 5 01 02 Other Compensation Personal Economic Relief Allowance 5 01 02 010 (PERA) 5 01 02 020 Representation Allowance 5 01 02 030 Transportation Allowance 5 01 02 040 Clothing/Uniform Allowance 5 01 02 050 Subsistence Allowance 5 01 02 060 Laundry Allowance 5 01 02 070 Quarters Allowance Starting Point – COA’s Revised Chart of Accounts 5 Expenses 5 01 02 080 Productivity Incentive Allowance 5 01 02 090 Overseas Allowance 5 01 02 100 Honoraria 5 01 02 110 Hazard Pay 5 01 02 120 Longevity Pay 5 01 02 130 Overtime and Night Pay 5 01 02 140 Year End Bonus 5 01 02 150 Cash Gift 5 01 02 990 Other Bonuses and Allowances Sub-Object Codes Expenses 50000000 00 50100000 00 Salaries and Wages 50101000 00 Salaries and Wages - Regular 50101010 00 Basic Salary - Civilian 50101010 01 Base Pay - Military/Uniformed Personnel 50101010 02 Salaries and Wages - Casual/Contractual 50101020 00 Other Compensation 50102000 00 Personnel Economic Relief Allowance (PERA) 50102010 00 PERA - Civilian 50102010 01 PERA - Military/Uniformed Personnel 50102010 02 Representation Allowance 50102020 00 Transportation Allowance 50102030 00 Transportation Allowance 50102030 01 RATA of Sectoral/Alternate Sectoral Representatives 50102030 02 Personnel Services New Codes for Capital Outlays Capital Outlays 50600000 00 Investment Outlay 50601000 00 Investment in Government-Owned and/or Controlled Corporations 50601010 00 Investment in Associates 50601020 00 50602000 00 Loans Receivable - Government-Owned and/or Controlled Corporations 50602010 00 Loans Receivable - Others 50602990 00 Investment Property Outlay 50603000 00 50603010 00 Investment Property – Land 50603010 01 Investment Property – Buildings 50603010 02 Property, Plant and Equipment Outlay 50604000 00 50604010 00 50604010 01 Loans Receivable Accounts Outlay Land and Buildings Outlay Land Outlay Land Revenue Account Fund Source Location 9 digits Organization Region 2 digits 6 Digits Department Agency 2 digits 2 digits Operating Unit 5 Digits General Fund DoF BIR 101101 11 003 Bacolod Western City Visayas Revenue Regional Office 11 00012 06 Province City 2 digits Municipality 2 digits Object Code Barangay 3 digits 10 digits Income Tax Individuals 00 00 000 40101010 01 Excludes Program MFO Activity Project Code element Asset Account Funding Source 6 Digits Organization 12 digits Object Code 10 digits Location 9 digits Financing 1 Authorizatio n2 Fund Category 3 Department 2 digits Agency 3 digits Operating Unit 7 digits Region 2 digits General Fund DOF BIR Cagayan Revenue Regional Office Cagayan Valley 101101 11 003 11 00003 02 Province 2 digits City Munici pality 2 digits Barangay 3 digits Chart of Accounts 8 Sub Object 2 Cash – Collecting Officers 00 00 000 10101010 00 Liability Account Funding Source 6 Digits Financing – 1 Authorization 2 Fund Category - 3 Organization 12 digits Department 2 digits Agency 3 digits General Fund 101101 Department of Public Works and Highways Office of the Secretary 18 001 Object Code 10 digits Location 9 digits Operating Unit 7 Digits Region 2 digits MalabonNavotas District Engineering Office 18 00002 National Capital Region 13 Province 2 digits City or Municipality 2 digits LGU 3 COA CoA* Object 8 digits Sub-Object 2 digits Accounts Payable 00 00 000 20101010 00 Excludes Program MFO Activity Project Code element and Fund Source element Part III Code Administration Code Administration 1. Assigned codes are never reused for a purpose other than that for which they were originally assigned 2. New codes are always to be assigned to: – – – – – new organizational entities new fund sources new major final outputs new programs, new activities, new projects new object code descriptors 58 Code Administrators/Agencies Responsible FUNDING ORGANIZATION SOURCE 12 digits 6 Digits LOCATION 9 digits MFO/PROGRAM, ACTIVITY and PROJECT (PAP) 9 digits OBJECT CODE SUB OBJECT 2 digits DBM Budget Technical Services NSCB DBM Budget Management Bureaus and NGAs COA Revised Chart of Accounts DBM Budget Technical Services + COA Subsidiary Accounts DBM Budget Technical Services Note: Consistency of account classification and coding standard with the Government Finance Statistics is the responsibility of DOF-Bureau of Treasury 59 UACS Manual The Manual and its Appendices are available at DBM website under Latest Issuances: http://www.dbm.gov.ph/ Joint Circular No. 2013-1 UACS Manual UACS Appendices What has been done so far? Approval of the COA Revised Chart of Accounts Issuance of the DBM-COA-DOF Joint Circular on the UACS Manual and its Appendices Adoption of UACS in the 2014 Budget Preparation through OSBPS into BPMS What are the current initiatives affected by the UACS? Adoption of the GAA as a Budgetary Release Document Review of existing a) Release Documents, b) Budget Execution Documents, and c)Financial Accountability Reports – DBM/COA Enhancement of eNGAS to comply with UACS 63